Question 4: TOFA is interested in signing a contract with TSMC for microprocessors for the third quarter of year 2021 (to use in commercial vehicle production in Turkey; one car uses one microprocessor). TSMC is asking for $300 per processor for this contract. The contract is a take-it-or-leave-it type of a contract. If TOFA needs more processors and has to purchase it from the spot market, the price is expected to be $420 per unit. Any processor procured through the contract becomes worthless if not used in Q3 of year 2021 as the models are going to change completely. A. TOFA estimates that its production of commercial vehicles in Q3 of 2021 will be normally distributed with a mean of 90,000 cars and a standard deviation of 10,000 cars. i. What should be the amount of contract that minimizes TOFA's expected microprocessor procurement costs? ii. What is the expected amount of microprocessors that needs to be purchased from the spot market? iii. What is the expected amount of microprocessors that TOFA pays for but end up not using? iv. What is TOFA's expected procurement cost for microprocessors in Q3 of 2021? B. Solve the same question in part A if TOFA's estimate for production of commercial vehicles is uniformly distributed between 60,000 and 120,000 cars